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CA Final · Advanced Auditing, Assurance and Professional Ethics · Sustainable Development Goals (SDG) & Environment, Social and Governance (ESG) Assurance

Under the Companies Act and SEBI requirements as taught for Indian listed entities, which statement correctly describes the auditor's role regarding the Business Responsibility and Sustainability Report (BRSR) of a listed company?

The auditor treats the BRSR as part of the annual report and reads it as other information for material inconsistency with the financial statements and audit knowledge. Assurance on BRSR Core indicators is a separate assurance engagement, not a certification within the financial statement audit report.

  1. AThe statutory auditor must certify the whole BRSR in the audit report on financial statements
  2. BThe BRSR forms part of the annual report, and the auditor reads it as other information for material inconsistencies with the financial statements and audit knowledge, while assurance on BRSR Core is by a separate engagementCorrect
  3. CThe BRSR is outside the annual report so the auditor has no responsibility at all
  4. DOnly the secretarial auditor may read the BRSR

Explanation

The BRSR is included in the annual report, so under SA 720 the auditor considers it as other information, without giving an opinion on it. Assurance on BRSR Core indicators is a distinct assurance engagement and not part of the financial statement audit report.

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